Which of the Following Statements Regarding Convenience Goods and Services

question 260

Multiple Choice

Which of the following statements regarding convenience goods and services is accurate?

• A) Shoppers will exert lots of effort to obtain the product.
• B) Consumers purchase the product on an infrequent basis.
• C) Consumers buy only after carefully comparing quality and value.
• D) Brand awareness and image are important in marketing these products.

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Definitions:

Unit Fixed Costs

The fixed costs associated with producing a single unit of product, which remain constant regardless of the level of production or sales volume.

Period Cost

Costs that are not directly tied to the production of goods and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Product Cost

The total cost associated with making or acquiring a product, including materials, labor, and overhead.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.